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ECB, BNR agree to extend euro liquidity framework arrangement to end-June 2021
The European Central Bank (ECB) and the National Bank of Romania (BNR) have agreed to extend their framework arrangement to provide euro liquidity to BNR via a repo line to end-June 2021, according to a BNR press release.
"The European Central Bank (ECB) and Banca Nationala a Romaniei (National Bank of Romania - BNR) have agreed to extend the framework arrangement to provide euro liquidity to the BNR via a repo line, in order to address possible euro liquidity needs in the presence of market dysfunctions due to the COVID-19 shock.Under a repo line, the ECB provides euro liquidity to a foreign central bank in exchange for adequate collateral," the release reads. Under the repo line, BNR will be able to borrow up to 4.5 billion euros from ECB.
It was initially agreed that the repo line would remain in place until 31 December 2020. The financial arrangement was extended until end-June 2021.